Best expat destinations for cheapest property taxes

Best expat destinations for cheapest property taxes

Best expat destinations for cheapest property taxes

Expats moving overseas in order to enjoy a peaceful retirement with less financial strain than in their home countries are choosing destinations with amazingly low property taxes.

For many would-be expats, retiring overseas isn’t just a chance to experience interesting new cultures and warm, sunny weather, it’s also about the best ways to stretch pension payments further than would be possible at home. For example, the burden of property taxes in first world countries can be a major concern when relying on a pension. Luckily, there are a good few destinations where property taxes are unbelievable low, thus leaving more money to be spent on the good things in life.

US property taxes are amongst the highest on the planet, with an average of $3,296 annually across the country and double that in some states including New York, California, New Jersey, Texas and Virginia. The UK’s version, ‘council tax’, is eye-wateringly high in London and other major cities, as are property taxes across the majority of other European countries.

One popular destination for retirees is Belize, where three-bedroomed villas set on half an acre of land and with bayside views are billed $50 a year in property tax. The charge is based on very low property valuations and is set at 1.5 per cent. One overjoyed US expat who paid $8,400 annually in Arizona is now paying $5 per year for his home in a local village. Another advantage is that capital gains tax doesn’t exist here.

Mexico is also a favourite with would-be expats for its famously low property taxes, normally costing around $100 or less and almost never over $300, thus saving US expats thousands of dollars each year. Capital gains tax does exist, and is charged at 30 per cent of the net value subject to conditions such as improvements and time occupied. According to resident expats, Nicaragua has hardy any taxes, with property-related charges actually reducing every year as they’re linked to the age of the property. If your home is valued at less than $40,000 for town houses or is set on rural land of 2.4 acres or less, it isn’t taxed at all!

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